What the New Marketing Model Means for Agencies

22 Jul 2025

The new report from AAR and ISBA, The Evolution of the Marketing Operating Model, gives a clear signal: marketing is changing fast, and agencies need to keep up. While the report is aimed mainly at CMOs, it carries some important messages for agencies, too.

The big headline? Only 51% of CMOs feel their current marketing setup is working well. That’s a big gap between perception and ambition - and it’s not just a problem for brands. It’s also a big opportunity for agencies to step in and help close it.

More than just delivery partners

For agencies, the key shift is this: brands aren’t just looking for someone to deliver work. They want partners who can help shape how that work gets done. Agencies that understand how a brand’s marketing team is structured - and how their own work fits into that - will be in a much stronger position.

This means working more closely with in-house teams and sometimes even helping to build or improve those teams. It also means being able to work more effectively across departments - especially media and creative - which 52% of CMOs said is a major challenge right now.

In-housing isn’t the end

There’s a lot of talk about in-housing, and the report reflects that. Around 44% of brands are bringing work in-house. But interestingly, 41% say they’re planning to stop using in-house agencies and go back to outsourcing.

This back-and-forth shows that many brands are still figuring things out. For agencies, this is a chance to offer support - not just creative or media services, but guidance on how to structure things in a way that works. If you can be flexible and help clients experiment, you’ll become a more valuable partner.

AI is already here

The report also shows that 52% of CMOs are already experimenting with generative AI. This isn’t something that’s coming “someday” - it’s happening now, and agencies need to be ready.

That means building up your own AI knowledge and helping clients figure out how to use it. From writing content faster to automating tasks, no one is questioning the impact that AI has on how agencies and brands work together. It’s those agencies that lead the way that will stand out for their clients.

The research is clear: Five things agencies can do now

  1. Learn how your clients work. Understand their internal marketing models so you can fit in and support them better. 
  2. Be flexible. Offer services that work with both in-house and outsourced setups. 
  3. Help break down silos. Work with both media and creative teams to improve the effectiveness of what both offer. 
  4. Support change. Offer help with training, processes, and team setup - not just campaigns. 
  5. Get smart about AI. Use it in your own work and show clients how to use it too.

Marketing is changing - and fast. Agencies that lead these changes, rather than fight them, will be the ones that succeed.

Download the full report here.

About The Author

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Katrina Law

Marketing Lead

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